More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
NARUC's Telecom Committee unanimously agreed the FCC should closely review Rural Digital Opportunity Fund long-form applications to ensure RDOF providers have what's needed to deliver on promises. The committee cleared that proposed resolution Wednesday at NARUC's virtual meeting. Earlier, an analyst raised concerns about young companies winning bids. Committee Chair Karen Charles Peterson urged the new FCC to revisit broadband reclassification and net neutrality rules, revamp USF contribution and restore Lifeline voice support.
Rural Digital Opportunity Fund auction winners must follow through on broadband promises, NARUC Telecom Committee members said in interviews last week. NARUC plans to vote at its Feb. 4-5 and 8-11 meeting on a draft resolution urging the FCC to scrutinize RDOF long-form applications (see 2101260033). Some commissioners raised doubts about fixed wireless and said they’re unfamiliar with entities that won federal dollars.
USF contribution reform could still be a long way off, said FCC Commissioner Mike O’Rielly and former Chair Mignon Clyburn at NARUC’s virtual annual conference Tuesday. O’Rielly, co-chair of the Federal-State Joint Board on Universal Service, slammed that body as dysfunctional. Earlier in the day, state officials cited the COVID-19 pandemic as they urged national broadband action.
State commissioners can influence broadband policy even with limited telecom authority, said NARUC broadband task force members at the association’s virtual annual meeting Thursday. Utility regulators’ telecom role “has diminished significantly” in most states, but they can still “play the role of honest broker,” said Idaho Public Utilities Commissioner Paul Kjellander, who next week becomes NARUC president. Collaboration with federal government is a must, said other commissioners.
State commissioners can influence broadband policy even with limited telecom authority, said NARUC broadband task force members at the association’s virtual annual meeting Thursday. Utility regulators’ telecom role “has diminished significantly” in most states, but they can still “play the role of honest broker,” said Idaho Public Utilities Commissioner Paul Kjellander, who next week becomes NARUC president. Collaboration with federal government is a must, said other commissioners.
The Nebraska Public Service Commission should keep the revenue-based USF contribution for business and government services because it’s less complex than a connections-based mechanism, big telecom and cable companies said in comments received Monday and emailed to us Wednesday. The PSC is proposing to expand its connections-based method that now applies only to residential services (see 2008110047). “Business customers' connections may fluctuate” and “the applicable surcharge would need to be examined, and potentially changed on a monthly basis,” Cox Communications, Charter Communications and Time Warner Cable commented jointly in docket NUSF-119. Large business customers might relocate to a lesser taxed state due to rate shock, the cablers warned. Carriers understand revenue-based contribution; applying contributions to business and government services “will be complex, costly and confusing,” said AT&T. Complexities applying the connections method to business and government services have increased in the past three years, said CenturyLink. COVID-19 “has caused an unprecedented shift to work from home and away from business communications services which is likely to impact the analysis,” it added. Nebraska law requires revenue-based contribution for prepaid wireless services, said CTIA. A connections method for residential services stabilized and increased the fund, so "the financial threat to the NUSF viability has been overcome,” said Frontier Communications. Moving to connections for business and government lines is "impractical at this time," said Windstream. Small rural telcos countered that applying connections-based contribution for all kinds of services is fairer. “Much of rural Nebraska remains unserved or underserved," and current remittances "will come nowhere close" to providing enough support, commented the Rural Telecommunications Coalition of Nebraska. Exempt prepaid wireless, toll revenue and directory, private line and paging services, which don't lend themselves to a connections-based surcharge, said a state group of rural independent companies. Keep revenue-based at least for institutional operator service providers, urged Securus, saying it doesn’t “have the ability to determine or charge the NUSF applying a connections-based methodology" because it charges prison customers per call.
Industry, USF recipients and consumer advocates are exploring new ways to fund USF. Talks began last year and remain in early stages, participants said in interviews. Parties fear the contribution factor, which reached a record high of 25% last fall (see 1909130003), isn't sustainable. Some want to present a unified funding proposal to Congress or the FCC. Most want the matter addressed next year.
Major associations wrote congressional leaders Thursday backing legislation funding replacement of Huawei and ZTE equipment in U.S. networks. Industry questioned the FCC approach on equipment by the two Chinese companies, in comments on how provisions in the Secure and Trusted Communications Networks Act affect supply chain security rules. The March law lacks funding for gear replacement (see 2003130083). Industry representatives told us they hope lawmakers fund it soon.